{"id":8544,"date":"2017-12-15T01:40:27","date_gmt":"2017-12-15T00:40:27","guid":{"rendered":"https:\/\/chartmogul.com\/blog\/?p=8544"},"modified":"2023-08-10T17:10:41","modified_gmt":"2023-08-10T15:10:41","slug":"prepare-saas-global-expansion","status":"publish","type":"post","link":"https:\/\/chartmogul.com\/blog\/prepare-saas-global-expansion\/","title":{"rendered":"How to prepare your SaaS for global expansion"},"content":{"rendered":"<p>When the time comes to expand outside of your core market, how do you begin to assess your options? To start, you could move your SaaS upmarket \u2014 go after bigger fish, the higher-value customers who will amplify your recurring revenue. These days there\u2019s <a href=\"http:\/\/tomtunguz.com\/the-pressure-to-move-upmarket\/\" target=\"_blank\" rel=\"noopener noreferrer\">a lot of pressure<\/a> on SaaS to move upmarket, and at ChartMogul we\u2019ve even written advice on how to do so (<a href=\"https:\/\/chartmogul.com\/blog\/how-to-move-up-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">without losing your soul<\/a>).<\/p>\n<p>For early and mid-stage SaaS companies, the desire (or pressure) to scale can drive the business into international territory. Here&#8217;s some advice on how to properly assess and prepare for this move.<\/p>\n<h3>Should you expand globally on your own or with a distributor?<\/h3>\n<p>Before we really start, this question should be considered, just planted in your head as you read on. Expanding globally can be even more complicated and risky than it sounds. Doing it on your own will likely consume a lot of resources.<\/p>\n<p>Another way to expand globally is to use channel distribution. This is what Tomasz Tunguz has called \u201c<a href=\"https:\/\/www.linkedin.com\/pulse\/most-successful-smb-saas-acquisition-channel-ever-built-tomasz-tunguz\" target=\"_blank\" rel=\"noopener noreferrer\">the most successful SMB SaaS acquisition channel ever built<\/a>.\u201d Teaming up with a distributor in your target markets \u201cenables you to gain global coverage without having any resources outside of your home market, essentially outsourcing your global channel enablement, marketing, sales and support to a distribution partner\u201d (<a href=\"https:\/\/www.linkedin.com\/pulse\/most-successful-smb-saas-acquisition-channel-ever-built-tomasz-tunguz\" target=\"_blank\" rel=\"noopener noreferrer\">Thomas Hansen<\/a>).<\/p>\n<p>You\u2019re essentially using resellers who are local in those foreign markets. Of course, the success of a distribution channel model like this depends on your product\u2019s ability to be bundled with other vendors in a way that makes sense and adds value to their customers. Not all SaaS products will fit such distribution partner\/reseller model.<\/p>\n<h1>Select your target markets<\/h1>\n<p>As a SaaS business, you can evaluate and prioritize potential new markets on <a href=\"https:\/\/techcrunch.com\/2015\/12\/23\/a-startups-guide-to-international-expansion\/\" target=\"_blank\" rel=\"noopener noreferrer\">these criteria<\/a>:<\/p>\n<ul>\n<li>Stable political situation<\/li>\n<li>Favorable socioeconomic environment<\/li>\n<li>Extensive broadband and mobile coverage<\/li>\n<li>Compatible or accessible payment infrastructure<\/li>\n<li>Simple regulations and tax requirements<\/li>\n<\/ul>\n<p>Of course none of these address the primary question: <strong>How big is the potential market?<\/strong> How many possible customers exist there, and how much possible revenue do they represent?<\/p>\n<p>To answer this, you could evaluate the GDP per capita compared to the overall internet population.\u00a0You can also evaluate whether the market has a large number of target customers with high disposable income. The standard markets that fit this bill are the US, the UK, Canada, Australia, France, Germany, and Japan. (If you\u2019re a B2B SaaS that serves fellow startups, you can look to regions where startups are well funded.)<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-10269 size-full-column\" src=\"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2017\/12\/deanna-ritchie-227649-1-720x480.jpg\" alt=\"\" width=\"720\" height=\"480\" srcset=\"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2017\/12\/deanna-ritchie-227649-1-720x480.jpg 720w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2017\/12\/deanna-ritchie-227649-1-300x200.jpg 300w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2017\/12\/deanna-ritchie-227649-1-1024x683.jpg 1024w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2017\/12\/deanna-ritchie-227649-1-1920x1280.jpg 1920w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2017\/12\/deanna-ritchie-227649-1-720x480@2x.jpg 1440w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2017\/12\/deanna-ritchie-227649-1-300x200@2x.jpg 600w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2017\/12\/deanna-ritchie-227649-1-1024x683@2x.jpg 2048w\" sizes=\"auto, (max-width: 720px) 100vw, 720px\" \/><\/p>\n<h1>Analyze your target markets<\/h1>\n<ul>\n<li><strong>Potential competitors<\/strong>: Does competition already exist there? Study your potential competitors. Where does your product fit? Not only does this tell you what you\u2019re up against, you also learn whether you\u2019ll have to educate the market yourself \u2014 or if you only have to differentiate your solution.<\/li>\n<li><strong>Possible customers<\/strong>: What does your target customer look like in this market, and how many of them are there? Your customer profiles could change or multiply, based on the new population. How could you reach these customers?<\/li>\n<li><strong>Localized knowledge<\/strong>: What knowledge and skills does the target market have that are different from your local customers? How might this affect their need for or use of your product?<\/li>\n<li><strong>Price localization<\/strong>: Based on the economic climate and competitive playing field, how might you need\u00a0to adjust your pricing?<\/li>\n<\/ul>\n<h1>Analyze your product and business<\/h1>\n<p>Based on your knowledge of the new market, evaluate your product for any possible gaps. Are any modifications necessary \u2014 to specific functionalities, communication touch points, UI, etc?<\/p>\n<p>As for your overall business, consider whether your existing brand, created for your local market, would translate well to your target foreign markets. What messaging would need to change to attractively convey your mission, company values, and product value?<\/p>\n<h1>Create a brand new go-to-market plan for target markets<\/h1>\n<p>We won\u2019t get into this here, as it\u2019s worth its own in-depth discussion. Not to mention a lot of reliable resources already exist on the subject of creating a go-to-market strategy. In this case you\u2019re adapting your\u00a0GTM\u00a0plan and operations to suit a secondary market.<\/p>\n<p>There are some things to consider around the <em>timing<\/em> of your go-to-market execution, though.<\/p>\n<ol>\n<li>The <a href=\"https:\/\/chartmogul.com\/blog\/seasonal-saas\/\">seasonality<\/a> of your business, if you have any.<\/li>\n<li>The seasonality of the target market. Does the culture have any holidays or breaks where business slows, such as the month of August in France? Plan around those so that your launch doesn\u2019t start out as a slump.<\/li>\n<li>Your company\u2019s other product launch schedules and team availability. You will want all hands on deck to ensure the roll out to a new market goes seamlessly. You also want to ensure rolling out to a new market doesn\u2019t adversely affect your current product offering in your core market. So coordinate between the two.<\/li>\n<\/ol>\n\n","protected":false},"excerpt":{"rendered":"<p>Every SaaS will feel the pressure to scale, whether upmarket or abroad. Here are the most important aspects to consider when planning to expand to foreign markets.<\/p>\n","protected":false},"author":9,"featured_media":10267,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[93,12,14],"tags":[278,279,251,250,21,234],"class_list":["post-8544","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-funding","category-gtm","category-pricing","tag-expansion","tag-go-to-market","tag-international-expansion","tag-market-expansion","tag-saas","tag-strategy"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to prepare your SaaS for global expansion | ChartMogul<\/title>\n<meta name=\"description\" content=\"Expanding SaaS to new markets requires multiple angles of analysis. Here are the most important aspects to consider for international expansion.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<link rel=\"canonical\" href=\"https:\/\/chartmogul.com\/blog\/prepare-saas-global-expansion\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to prepare your SaaS for global expansion | ChartMogul\" \/>\n<meta property=\"og:description\" content=\"Expanding SaaS to new markets requires multiple angles of analysis. 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